Dollar Tree 2015 Annual Report Download - page 6

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synergies. We are currently on-track to realize at least $300 million in
annual run-rate hard-cost synergies by the end of three years.
Our primary areas of initial focus regarding the integration have been on:
t The Customer – An intense focus on the value customer and delivering
the merchandise assortment to better serve their needs. This includes
a mix of name brand and private label basics alongside variety and
seasonally relevant product. We are committed to EDLP by delivering
everyday values at competitive prices.
t Improving sales per selling square foot and inventory productivity by
expanding high performing categories and eliminating products that
do not meet our sales and pro tability thresholds.
t Enhancing the customer experience and improving the table stakes
by consistently delivering on the promise of a bright, clean and
friendly store to shop. We are tracking key metrics closely to monitor
our progress.
t Increasing new store, remodel and expansion performance with a keen
focus on pro tability improvement metrics and ROIC.
In the early stages of the integration, there have been no surprises that
diminish our vision and plans for value creation. In fact, as we improve retail
operations, there is increased enthusiasm for the opportunity this merger
presents to grow and to serve more customers in more ways. We have
con dence in our disciplined approach to continue improving the customer
experience at Family Dollar, and in our ability to capture synergies for the
combined organization. With a focus on managing our business in real-
time, our eyes are on the horizon as we develop the foundation for a larger,
stronger, and more diversi ed business that will generate cash and build
shareholder value for years to come.
Plenty of Room for Pro table Growth
Looking forward, we have a terri c opportunity to serve more customers in
more markets through a larger, more diversi ed business.
Our plans for 2016 include opening 350 new Dollar Tree stores and 200
new Family Dollar stores. We will remodel, relocate or expand approximately
200 stores. We will complete the conversion of all of our Deals stores and
will re-banner an additional 100 Family Dollars to Dollar Trees. Overall, selling
square footage is expected to expand by 4.0% for 2016.
In addition to adding new stores, running better stores is just as critical for
our business. We operate in an environment of continuous improvement and
are never satis ed with the status quo. We are relentless in identifying ways
to be more productive and e cient throughout our business, including store
operations, merchandising, supply chain and back-o ce support and the use
of technology.
We continue to be pleased with the development, growth and
performance of our on-line business at Dollar Tree Direct. Launched in 2009,
our e-commerce platform provides an opportunity to broaden our customer
base, drive incremental sales, expand the brand and attract more customers
into our stores. Whether customers prefer to contact Dollar Tree Direct via
their phones, their tablets, their laptops or their desktops, we are ready and
able to connect with them. Please check us out at DollarTree.com.
WE HAVE
CONFIDENCE IN
OUR DISCIPLINED
APPROACH
TO CONTINUE
IMPROVING
THE CUSTOMER
EXPERIENCE AT
FAMILY DOLLAR,
AND IN OUR ABILITY
TO CAPTURE
SYNERGIES FOR
THE COMBINED
ORGANIZATION.
4Dollar Tree Annual Report 2015